On 27 May 2022, Law of Ukraine “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine Regarding the Peculiarities of Tax Administration of Taxes, Fees and Unified Social Contribution During Martial Law and the State of Emergency” No. 2260-IX, dated 12 May 2022 (the “Law”), entered into force. The Law introduced several changes to the taxpayers’ rights and obligations during martial law.
Tax liabilities renewal
Tax relief measures imposed under martial law in Ukraine were limited. Taxpayers that can fulfil their tax obligations must file tax returns by 20 July 2022 and pay taxes by 31 July 2022.
Taxpayers must file tax returns, pay taxes, and register VAT invoices within 60 days after the month in which they renewed their ability to meet tax obligations. The Ministry of Finance of Ukraine will adopt the procedure and a list of documents for confirmation of inability to fulfil tax obligations.
Taxpayers paying unified tax at a preferential 2% rate must fulfil their tax obligations which are not related to the preferential regime within 60 days after returning to their usual tax regime.
VAT administration and VAT refunds
The registration of VAT invoices and VAT refund procedures are renewed. Taxpayers must register VAT invoices for February – May 2022 reporting period by 15 July 2022.
Tax inspections renewal
The Law further removes prohibition of all in-house inspections and certain unscheduled documentary inspections.
Such inspections are subject to access to territories, premises, financial statements and documents, information on taxpayer’s expenses and other tax information, etc.
Special timeline for VAT return tax inspections and VAT refunds is introduced.
By Vadim Medvedev, Partner, and Taisiia Duda, Associate, Avellum